Saint-Paul, Gilles - Institute for the Study of Labor (IZA) - 2001
knowledge sector is bounded, as productivity increases, the economy moves from a "Solovian zone" where wages increase with … bliss point can only be made better-off by an increase in diversity. If wages are set by monopoly unions rather than set … increases utility. It is assumed that each variety is owned by a monopoly. Workers can specialize in material goods production …